West African Resources (ASX: WAF) has pounced on Channel Resources (TSX.V: CHU) in a takeover which will increase the company's gold and copper exposure in Burkina Faso.
The transaction represents a 100% premium over Channel’s recent trading price (based on WAF's last closing share price of A$0.16) and has been unanimously approved by the board of directors of both companies.
The outcome is that WAF has consolidated neighbouring near surface high-grade gold targets at WAF’s Moktedu and CHU’s Tanlouka Project (1Moz at 1g/t, including 0.54Moz at 1.6g/t, Initial Inferred and Indicated Resources – NI 43-101).
There is the potential for near term production from the consolidation of oxide gold targets, using a low capex heap-leach process.
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